Macroeconomics Scavenger Hunt Measuring Economic Activity


Oct 28, 2013 (5 years and 3 months ago)


Macroeconomics Scavenger Hunt

Measuring Economic Activity

Directions: Answer the following questions using only pictures, charts, and information
boxes. Begin on page 301

the questions go in order from there.



way of calculating GDP is the Expenditure Approach. What is considered in this calculation?

Under the income approach, the combined selling price of the products reflects what?

3. The income approach to GDP is the sum of …

4. Which one, expenditure o
r income approach, is usually more accurate?

5. Use the Circular Flow Model to answer the following.

a. Which part of the diagram would you use to calculate GDP using the expenditure approach?

b. Which part of the diagram would you use to calcula
te GDP using the income approach?


Why do economists calculate Real GDP?

7. Using year 1 as the base year, calculate real GDP for Year 3 in which 15 cars and 14 trucks were sold.

8. About how many Americans earn a large part of their income from the un
derground economy?

What has to happen in order for grocery shopping to be counted in GDP?

10. What is the calculation (GDP + Income earned by U.S. firms & citizens outside the U.S.

Income earned by foreign

firms & citizens inside the U.
S.) for?

11. What happens to the Aggregate Supply & Demand equilibrium when the AD curves shifts from AD1 to AD2?

12. Looking at the business cycle, answer the following?

a. Trough, Peak, Expansion, Contraction

put in correct order.


What happens during a contraction?

c. What happens during an expansion?

Looking at figure 12.8

When business investment declines, what happens to

a. aggregate demand?

b. real GDP?

c. the price level?

14. Give two
examples how the entire world was affected by the Great Depression.

15. Looking at figure 12.10, What do you think leads to the rise in real GDP in the early 1940s?

16. What are some indicators used to determine a country’s standard of living?

Why is capital deepening important?

18. How is the economy affected when people save money?

19. How have innovations revolutionized business efficiency in recent decades?

20. Who is affected by seasonal unemployment?

21. What is an example of structu
ral unemployment?

22. Who can be affected by cyclical unemployment?

23. Currently, the number of people unemployed in the U.S. is 154,110,000. There are 14,860,000 unemployed.

What is the unemployment rate?

24. What is considered the normal
unemployment rate for a healthy economy?

25. Look at figure 13.3. Why do you think more people can afford a car today than in 1908, despite higher auto prices?

26. What is the CPI market basket used for?

27. Why do rising food prices fuel a wage


28. How do poverty rates in the late 1990s and 2000s compare with those from the 1960s?

Looking at figure 13.9, what group has the highest poverty rate?